Tequila Exportation – a Growing Business

Mexico’s excellent climate offers favorable conditions for producing tequila year-round. But if there is one month of the year in which the tequila trade reaches its peak, it is in September, due to the demand generated during the Mexican national holidays. It is essential to take several factors into consideration when exporting tequila (or mezcal, since the mechanisms for exportation are similar).

Mexico’s main organizations that regulate the exportation of tequila are the Tequila Regulatory Board (Consejo Regulador del Tequila) and the Mezcal Regulatory Board (Consejo Regulador del Mezcal), as applicable.All exporters must be registered with the appropriate board. First, it is important to carefully consider your production plan. We’ll answer some basic, commonly-asked questions before we get started with foreign trade operations.

Bottled or Bulk?

Tequila, like mezcal, has a high alcohol content, usually between 30-50%. Transportation of these liquids can be complicated regardless of the format:

Bottled: the product is considered delicate cargo and the packaging itself (the bottle) ensures the minimum safety standards.

Bulk (to be bottled at the destination): the product would be considered hazardous, and we would have to use various transportation methods such as ISO tanks (for ocean shipments) or tankers (for ground shipments).

At TIBA we recommend that you export tequila in bottles so you can ensure that the final product meets the bottling standards from the point of origin, as well as for security purposes.

Small or Large Quantity?

The quantity of product exported is crucial to ensure the success of your operations. There are only two categories of end clients in the tequila business, based on the size of the export: major self-service outlets and smaller retail merchants. It is an undeniable reality in the industry that the first group enjoy many privileges that make their operations a bit easier. But against all odds, even the smaller exporters have methods at their disposal to hold their niche in the market.

Large exporters: When exporting tequila, these merchants face less restrictive standards at the destination with regard to operations, making it easier to ship several full container loads (FCL shipments).

Small exporters: Unfortunately, these exporters experience more restrictions and commonly need to use multiple shipments to fill a container, even if they are different products (LCL or “Less than Container Load” shipments), which can result in additional consolidation expenses.

At TIBA we have the ability to consolidate full containers of tequila and mezcal, even for the smallest exporters, allowing you to save time and money.

Europe, the Americas, or Asia?

As a passenger, you can only carry a limited number of bottles of wine and liquor in your suitcase, depending on the country. The same is true when importing tequila and mezcal, but on a different scale. In addition, the standards vary by mode of entry (ground/ocean) into each country.

Asia/Europe: At some transshipment ports (which are sort of layovers at different airports) there are restrictions as to the amount of tequila/mezcal imported, even if the final destination allows a larger quantity. You may have to pay a special fee as an import guarantee. Some key transshipment ports include Busan, South Korea and Hamburg, Germany.

At TIBA we are familiar with every country’s transshipment port regulations, and we can help you with the necessary documentation to ensure that your tequila and mezcal export process is successful.

Incoterms – The Great Dilemma.

Incoterms are a major determining factor in your export process. There are three main commercial agreements clients may select when shipping these products: CFR, FOB and Ex Works (EXW). Each Incoterm shifts responsibility for various charges between the exporter and importer. Below are a few of the most common responsibilities under the Incoterms as they relate to tequila and mezcal exports:

At TIBA we recommend CFR, followed by FOB and EXW. We are experts in customs procedures, and we specialize in comprehensive services, which allow you to better monitor your operations. Have questions or need more information? Contact our Beverages Division and we will be happy to assist!